Economics Marginal Utility Questions
The marginal utility of land influences agricultural practices by determining the optimal allocation of resources and the decision-making process of farmers. As the marginal utility of land decreases, farmers are less likely to invest in additional land for cultivation. Instead, they may choose to invest in other factors of production, such as labor or technology, to increase productivity on existing land. Additionally, the marginal utility of land also affects the choice of crops grown, as farmers will prioritize crops that provide the highest marginal utility per unit of land.